Answer: Clay Company
Explanation:
Based on the information given, the current, previous year and two previous years beforehand profit margins of Clay company are greater than the corresponding profit margins of Roak company.
This means that Clay company has a better profit margin and shows that they retain a higher percentage of their revenue after costs are taken out as opposed to Roak company.
Answer: b. Sales Returns, Wages, Machinery, Discount Allowed
Explanation:
Sales returns reduce the sales made. Sales are put on the credit side so transactions that will reduce sales such as sales returns would have to go on the debit side.
Wages are an expense and expenses are debited to show they are increasing so they have a debit balance.
Machinery is an asset and assets have debit balances.
Discount allowed reduces the sales balance and as mentioned above, transactions that reduce sales go on the debit side so this has a debit balance as well.
Answer:
$75,637.5
Explanation:
Sales = $225 million
Growth in sales = 10%
Inventory = $15 + 0.245(Sales)
(sales) S1 = $225,000,000 × 1.10
= $247,500,000
Inventory = $15 + 0.245 ($247.5)
= $15 + 60.6375
= 75.6375
Since this relationship is expressed in thousands of dollars,
Inventory = $75.6375 x $1000
= $75,637.5
Answer:
Normal goods
Explanation:
In simple words, normal goods refers to the goods which re necessary for the survival for the survival for re consumer and the consumer do not take its quality into consideration while making a purchase decision.
The demand for such goods have a positive relationship with the income of consumer, that is, when the income or wages of consumer increase the demand for such goods also increases and vice versa.
The increase in demand for normal goods by consumer is sometimes also seen as an indicator of an economic growth. Clothes, vegetable and medicines are some of the many examples of normal goods.
Answer:
6.37%
Explanation:
Annual yield is the annual dividend yield of a bond.
Formula for annual yield = Annual dividend amount / Current price of the bond
Annual dividend amount = Annual interest rate * Face value
= 6% * $5,000
= <u><em>$300</em></u>
Current price = 94.125 means that the bond price is 94.125% of the Face value
Current price = 0.94125* 5000 = <u><em>$4,706.25</em></u>
Therefore, annual yield = 300/4,706.25 = 0.0637 or 6.37%
